Unit of Malaysia's TNB gets more time to reach fin close for 50-MW solar project

Solar power station. Featured Image: worradirek/Shutterstock.com

August 12 (Renewables Now) - Malaysian utility Tenaga Nasional Bhd (KLSE:TENAGA) said today that the Energy Commission (EC) has given more time to one of its subsidiaries to reach financial close for a 50-MW/75-MW-DC solar project in Kedah.

TNB Renewables Sdn Bhd, which is fully owned by the utility, was shortlisted by the commission in March 2021 to develop this project at Bukit Selambau. Several months later, the unit entered into a power purchase agreement (PPA) with TNB in relation to the plant’s future output.

Initially, the financial close date (FCD) was set for June 30, 2022, but it has now been pushed back until September 30, 2022. Consequently, the scheduled commercial operation date (SCOD) of the solar park has been set for December 31, 2023, and the effective period of the related PPA has been extended by four years for a total period of 25 years.

TNB pointed out that the project is on track to achieve the FCD by the end of September 2022. A supplementary agreement will be signed in relation to the original PPA.

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